Spain’s Ministry of Finance has recently approved a draft anti-fraud law that requires citizens to disclose their crypto holdings. The intention is to ring-fence taxes and prevent tax evasion. The new rules were announced during a press conference held by Spain’s finance minister, María Jesús Montero. María Jesús Montero is the author of the bill,

Spain’s Ministry of Finance has recently approved a draft anti-fraud law that requires citizens to disclose their crypto holdings. The intention is to ring-fence taxes and prevent tax evasion.

The new rules were announced during a press conference held by Spain’s finance minister, María Jesús Montero. María Jesús Montero is the author of the bill, which is clear legislation which requires self-identification of crypto trading and holding as an attempt at anti-fraud and anti-tax avoidance legislation.

According to the Spanish minister, Maria Jesus Montero, the new law regulation proposes that the Spanish citizens are now required to disclose their identity and all their cryptocurrency holdings clearly. Even the citizens who have their cryptos outside Spain are expected to report that holdings each year to the authorities of Spain.

The draft law also suggests a stiff penalty in case of any inaccurate, false, fake, misleading or incomplete report when it comes to disclosing the personal holdings. The taxpayers can charge with $5,570 (€5,000) for each false statement in their reports.

Spain is working on increasing regulation over the crypto industry. This year alone, it has sent requests to more than 60 businesses, asking them to provide identification of their users.

Whether this recent decision will have any impact on cryptocurrency investment remains unclear at the moment as no further information was forthcoming at press time.